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Trade dept limits import payment sources at Thai-border

3 November 2022

The trade department has limited traders at the border with Thailand to use only export earnings or forex sold by overseas Myanmar nationals who remit their salaries to pay for imports as part of a pilot programme starting this month.

The department said it plans to limit settlements for imports to the banking system in order to strengthen compliance with the Financial Action Task Force’s directives on the prevention of money laundering.

Importers will have to make payments for imports via banks using these incomes, but only those channelled into the country after 1 April 2022 can be used for this purpose.

The new policy was not welcomed by traders at the Thai border, particularly in Tachileik, which sees less exports compared to Myawaddy and Kawthaung. Traders worry that this limitation will also make sourcing forex harder and cause the kyat to depreciate.

The pilot programme at the border with Thailand came into effect on 1 November but will exclude import licence applicants who applied on 31 October.

Traders who have received import licences before the aforementioned date must complete their import processes before 30 November, otherwise the licence will be terminated.

The import processes during the pilot programme will be allowed as follows: 

  • When applying for import licences, the company must submit the original Credit Advice and Bank Statement issued by the relevant bank to the Trade Department.
  • The Trade Department will scrutinise the amount of export incomes or other incomes submitted by the company and grant import licences not exceeding the balance amount of their bank accounts. 
  • For opening the Import Declaration-ID for imported products that do not need import licences, the original Credit Advice and Bank Statement issued by the relevant bank must be submitted to the Customs Department 

Kyat/baht direct payments

The Central Bank of Myanmar (CBM) issued two notifications on 3 March which gave permission and guidelines for direct kyat-baht payments at the border with Thailand. Traders were also allowed to open baht accounts at designated banks for cross-border trade which currently include Myanma Economic Bank, Ayeyarwaddy Farmers Development Bank (A Bank), KBZ Bank and Kasikornbank (K Bank).

On 26 April, the CBM exempted traders at the border with Thailand and China from converting forex earned from border trade into kyat within 24 hours, and instead extended the deadline for these traders to 30 days from the date of receipt into their bank account.

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